Spring 2001 Issue
The Numbers are In: Impact 2001
Despite last year's downturn in the economy, SCMEP has shown an increased sales impact of $88.7 million for its South Carolina manufacturing clients in 2001. This is an increase of about $4 million in new and retained sales by manufacturers since the prior year's report. These sales impact results can be directly attributed to SCMEP's services performed in 2001 for its client base - the state's manufacturers.
Many of the manufacturers impacted are small and mid-sized facilities. "Working with SCMEP, we have been able to increase sales by $350,000 post-certification [ISO 9002]," says Bill Totten, president and founder of MI-TECH, Inc., a small minority-owned manufacturer located in North Charleston that repairs industrial and marine machinery.
In addition to new sales, SCMEP helped manufacturers increase their bottom lines through cost-saving measures. In 2001, companies experienced $20.6 million in cost savings as a direct result of working with SCMEP's dedicated and trained manufacturing specialists. "SCMEP saved us a potential $100,000 outlay for an extra lathe we thought we needed but actually didn't, and they are helping us adapt our existing software rather than purchasing new software for a variety of purposes," says Brenda Duncan, owner of Oconee Machine and Tool, a full-service machine and tool shop in the Upstate.
Another company, Omnova Solutions, Inc., has realized cost savings via SCMEP's training programs. Glen Pellett, director of operations for Omnova, attended a one-day lean manufacturing workshop at York Technical College and ended up saving $76,000 at his plant in Chester. The workshop showed him how to increase the cycle time for a savings of $63,000 and 240 hours per year; how to improve yield; and how to get more finished product for every pound of raw material, worth another $13,000. And that doesn't count the reduced environmental impact and inventory reduction - worth $60,000, Pellett said, now that they don't have to spend money to create storage capacity.
The SCMEP Story
How was this information compiled? SCMEP surveys all companies that engage in projects with the organization. These companies are surveyed one of two ways: through an internally driven survey or by an independently conducted survey by SCMEP's federal funding agency, the National Institute of Standards and Technology (NIST). The survey must demonstrate that the companies served have quantifiable, positive impacts to their bottom line productivity. To determine estimated economic impact, data is applied from the U.S. Department of Commerce's Census of Manufacturers (1992) to survey results. This provides a projected economic impact to South Carolina's economy from the benefits reported by SCMEP's manufacturing clients.
For the past 12 years, SCMEP has focused on helping manufacturers throughout the state by solving business and supply chain process problems. SCMEP offers business and technology assessments, engineering expertise and lean manufacturing solutions to South Carolina manufacturers in search of a single solution for supply chain synchronization and internal optimization processes. The SCMEP provides this business and technology support to manufacturers through onsite consultations, partnerships with state technological schools and research universities to provide educational programs, online assessment, an e-services portal, and other business tools. Using the SCMEP's services enables manufacturers to see business benefits at a faster rate and enhances economic development in South Carolina.
Moving Forward
"Our mission is to provide comprehensive, expert resources and solutions implementation to South Carolina's manufacturers, with the goal of making these companies more competitive and productive," says John Irion, SCMEP president. "We will continue to move forward in 2002 by helping manufacturers save money through productivity enhancements and increased sales. We measure our success in terms of dollars earned, saved and invested by our clients. Our focus on measuring the impact of services assures we stay on-target and working to meet manufacturers' goals and improving their bottom lines."
Out of 355 manufacturers served and surveyed in 2001, SCMEP walked away with an 87% approval rating. "Customer satisfaction is high and is another indicator that we are meeting and many times exceeding manufacturers' expectations of our expert staff and services," says Irion. Another indicator is the capital investment made by manufacturers last year. For building expansions, training investments, and procurement of equipment and software, manufacturers invested a total of $49.1 million. This economic stimulation affects employers across the state - increasing payrolls through added jobs, increased sales tax revenues, repeat business, and additional services provided by companies serving the manufacturing sector.
How Did SCMEP Financially Impact Manufacturers in 2001?
- New & Retained Sales by Manufacturers $88,739,024
- Cost Savings in Manufacturing Facilities $20,618,049
- Capital Investment in Facilities $49,155,527
- New Job Creation 482
- Retained Jobs 118
- Total Number of Manufacturers Served by SCMEP 1,382
